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Welfare and capital-theoretic foundations of corporate social responsibility and corporate sustainability

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  • Hediger, Werner
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    Abstract

    Corporate social responsibility (CSR) and corporate sustainability (CS) are variously defined in the literature. Providing formal definitions for the two concepts, we show in this article that CS and CSR are distinct but interrelated concepts that can be usefully formalized with capital-theoretic and welfare economic approaches. CSR can particularly constitute a strategy to cope with externalities and serve as insurance against reputational risks that harm profit prospects and corporate value. Moreover, we present a formal approach for integrating the societal perspective of sustainable development with the corporate perspective of CSR and CS. This approach is complementary to a company's internal CSR and CS evaluation.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics).

    Volume (Year): 39 (2010)
    Issue (Month): 4 (August)
    Pages: 518-526

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    Handle: RePEc:eee:soceco:v:39:y:2010:i:4:p:518-526

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    Web page: http://www.elsevier.com/locate/inca/620175

    Related research

    Keywords: Corporate social responsibility Corporate sustainability Sustainable development Externalities Reputation;

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    Cited by:
    1. Sung-Lin Hsueh, 2012. "A Fuzzy Utility-Based Multi-Criteria Model for Evaluating Households’ Energy Conservation Performance: A Taiwanese Case Study," Energies, MDPI, Open Access Journal, vol. 5(8), pages 2818-2834, August.
    2. Hsueh, Che-Fu, 2014. "Improving corporate social responsibility in a supply chain through a new revenue sharing contract," International Journal of Production Economics, Elsevier, vol. 151(C), pages 214-222.
    3. Kuang-Sheng Liu & Sung-Lin Hsueh & Wen-Chen Wu & Yu-Lung Chen, 2012. "A DFuzzy-DAHP Decision-Making Model for Evaluating Energy-Saving Design Strategies for Residential Buildings," Energies, MDPI, Open Access Journal, vol. 5(11), pages 4462-4480, November.
    4. Werner Hediger, 2013. "From Multifunctionality and Sustainability of Agriculture to the Social Responsibility of the Agri-food System," Yearbook of Socioeconomics in Agriculture, Swiss Society for Agricultural Economics and Rural Sociology, vol. 6(1), pages 59-80.

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